Southern Co dips after unveiling $1.75 bln equity units offering plans

Southern

03/11/2025 12:19

** Shares of utility Southern Company SO.N down 1% premarket to $93.10 as it looks to raise capital to refinance debt

    ** Atlanta, Georgia-based SO says it plans to sell 35 mln equity units at $50 for $1.75 bln in public offering

    ** Each unit comprises a contract to purchase SO common stock in the future and two 1/40 undivided beneficial ownership interests in remarketable senior notes

    ** SO intends to use portion of net offering proceeds to repurchase a portion of its 3.875% convertible notes due Dec 15, 2025 and 4.5% convertible notes due Jun 15, 2027

    ** Remainder of proceeds to be used to repay debt, for general purposes, including investments in subsidiaries

    ** BofA, JP Morgan and Mizuho are joint bookrunners

    ** SO has ~$103.5 bln market cap

    ** Co early Thurs posted Q3 profit beat, aided by surging demand for electricity from businesses

** Stock on Fri closed down 1.1% at $94.04. YTD, stock up ~14% vs S&P 500 Utilities sector's .SPLRCU 17.5% advance

** Avg rating among 24 analysts is "hold" and median PT is $102.25, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))